Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What factors to be considered while preparing a credit control policy?

user-image
Question added by Muhammad Masood , Regional Director Sales , TCS (Pvt) Ltd
Date Posted: 2014/10/12
Hafiz Amjad Mehmood
by Hafiz Amjad Mehmood , Project Accounting Manager , Huta Group

- Organization's ability to extend credit

- Organization's operational strength with respect to deliveries, invoicing, collections

- Market Trends towards Credit Control

- Hotspot Identification strategies

- Incentives Vs Penalties Analysis

RAGHUPATHY RAMASWAMY
by RAGHUPATHY RAMASWAMY , ACCOUNTS EXECUTIVE , BHIMA JEWELLERY, MADURAI

It must be both1 &2. Because measuring Organizational strength of giving credit is very important if the organization cannot survive by giving credit or number of days it can survive must be analysed. Also market trends like for what product the organization and whether other competitors and general market trend towards credit for the same product or products must be taken into account. No use of giving credit for items which are fast moving where the buyer will sure get his margin immediately so he will not mind paying the organisation by cash without availing credit.

Muhammad Masood
by Muhammad Masood , Regional Director Sales , TCS (Pvt) Ltd

1. Organizational strength of giving credit

2. Market trends

3. Risk calculation criteria

4. Client's due diligence 

5. Sales ownership

More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.